Bok Financial Corporation · NASDAQ:BOKF
Bok Financial — Investor Presentation (November 2022)
26 slides from Bok Financial's investor presentation, November 2022
Slide 1: Investor Presentation
Investor Presentation November 2022
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about BOK Financial Corporation, the financial services industry, the economy generally and the expected or potential
Slide 3: Financial Results Q3 2022
Financial Results Q3 2022 3
Slide 4: Summary Financial Statements
Summary Financial Statements Sep. 30, June 30, Sep. 30, Linked-Quarter Commentary ($Million) 2022 2022 2021 Average Securities $16,289 $17,259 $21,583 Average trading securities down as industry-wide mortgage originations slowed. Average Loans $21,599 $21,058 $20,849 Excluding PPP loans, our core po
Slide 5: Q3 summary
Q3 summary Noteworthy items impacting profitability • Margin expansion as loans reprice in response to Quarterly earnings trend increases in short-term rates; loan growth continued to NET INCOME accelerate, both in outstanding balances & unfunded commitments Attributable to shareholders Per share (d
Slide 6: Loan portfolio
Loan portfolio Sep. 30, June 30, Sep. 30, Seq. Loan YOY Loan • Energy balances were flat while ($Million) 2022 2022 2021 Growth Growth unfunded commitments grew Energy $3,371.6 $3,393.1 $2,814.1 (0.6)% 19.8% • Seasonal decline in Services as well as continued payoffs in Services 3,280.9 3,421.5 3,32
Slide 7: Yields, rate & margin
Yields, rate & margin Net interest revenue ($Million) Q3 2022 Q2 2022 Q3 2021 Quarterly Quarterly sequential YOY • Net interest revenue up $42.3 million linked quarter; increase Net interest revenue $316.3 $274.0 $280.2 15.4% 12.9% in short-term rates drive loan repricing - interest income Net inter
Slide 8: Asset sensitivity
Asset sensitivity Scenario* ∆ NIR % ∆ NIR $ Noteworthy balance sheet items Up 200 Ramp, months 1-12 1.65% $24.2 million • Approximately 79% of Commercial and Commercial Real Estate portfolios are variable rate or fixed rate that reprice within a year Up 200 Ramp, months 13-24 4.15% $67.3 million • N
Slide 9: Fees & commissions
Fees & commissions Brokerage & trading • Linked quarter increase due to improved margins Qtr. Seq. Qtr. Seq. Qtr. YOY on Trading activities and a record quarter for ($Million) Q3 2022 $ Change % Change % Change municipal underwriting/financial advisory fees Trading fees $26.5 $14.5 120.7% 10.0% Deri
Slide 10: Expenses
Expenses Expenses summary % Incr. % Incr. ($Million) Q3 2022 Q2 2022 Q3 2021 Seq. YOY • Total operating expenses increased only 1.2% year- over- year Personnel expense $170.3 $154.9 $175.9 10.0% (3.1)% • Quarterly personnel expenses increased 10%, but down 3.1% year- over-year; both are driven by ma
Slide 11: Key credit quality metrics
Key credit quality metrics Quality metrics summary Net charge-offs to average loans ANNUALIZED • Total non-accrual loans increased $16.7 million; primarily due to healthcare & service loans, partially offset by a decrease in energy loans • Potential problem loans (substandard, accruing) totaled $95
Slide 12: Capital Management
Capital Management Q3 2022 Q2 2022 Q3 2021 Capital Management Overview • Robust capital ratios consistently remain well above regulatory Common Equity Tier 1 11.8% 11.6% 12.3% and internal policy thresholds • Repurchased 548,034 shares at an average price of $91.20 per Total Capital Ratio 12.8% 12.6
Slide 13: Forecast & assumptions
Forecast & assumptions ◦ We currently expect mid to upper single digit annualized loan growth. Our geographic footprint remains very strong and may outperform in this cycle given the high level of business migration from other markets and the role energy plays in our footprint. ◦ We have a strong ba
Slide 14: BOK Financial Corp
BOK Financial Corp 14
Slide 15: Corporate snapshot
NASDAQ: BOKF BOK Financial Corporation CONSUMER, COMMERCIAL & BROKER/DEALER & MORTGAGE BANKING INDEPENDENT ADVISORY SERVICES Corporate snapshot • Top 30 national/regional bank* BOK Financial ® BOK Financial Securities • Midwest/Southwest franchise Bank of Texas BOK Financial Advisors Bank of Albuque
Slide 16: Core strategy
Core strategy Build a bank with diverse Earnings per share CAGR across 29 year history of BOKF is 9.9% revenues that can compete upstream and outperform peers across varying economic cycles. "There is no principle more emphasized in our organization than managing for long-term value rather than shor
Slide 17: Diverse revenue sources
Diverse revenue sources Well diversified Revenue composition as of 9/30/2022 35%-40% of total revenues come from a diverse set of well-established fee income businesses, a differentiator compared to other midsized regional banks. Additional fee income categories: Fiduciary & asset management Brokera
Slide 18: Strong core deposit franchise
Strong core deposit franchise Deposit Deposit mix & cost ($million) Geographic deposit mix MSA Branches share Tulsa, OK 21 31% Demand Interest-bearing transaction Dallas/Fort Worth/Metro, TX 20 2% Savings Time Oklahoma City, OK 15 11% 14% 3% Albuquerque, NM 13 11% Denver/Metro, CO 13 4% 4% 3% 5% 6%
Slide 19: Diversified loan portfolio
Diversified loan portfolio Disciplined concentration management, diversified by sector & geography Loan segmentation Collateral location as of 9/30/2022 as of 9/30/2022 Commercial real estate Texas Loans to individuals Other Services Oklahoma Healthcare Colorado Energy Arizona General business Kansa
Slide 20: Energy banking
Energy banking Portfolio composition More than 100-year history in energy lending as of 9/30/2022 and a playbook that works • Focus on first lien, senior secured E&P lending, the “sweet spot” in energy lending. • Internal staff of 16 petroleum engineers and engineering techs to confirm Oil & gas pro
Slide 21: Healthcare banking
Healthcare banking Portfolio composition Outstandings totaled $3.8 billion across as of 9/30/2022 35 states at 9/30/2022 Healthcare portfolio characteristics: Senior housing • Favorable spreads Hospitals • Above-average loan utilization rates Service medical • Predominately BOK Financial originated
Slide 22: Commercial real estate
Commercial real estate Portfolio composition as of 9/30/2022 $4.5 billion outstanding and $2.9 billion BY PRODUCT TYPE unfunded commitments at 9/30/2022 Multifamily Office • BOKF allocates 185% of Tier 1 capital plus reserves to CRE. Industrial • Further controls and limitations by product type and
Slide 23: Wealth Management
Wealth Management Wealth Management revenue as of 9/30/2022 FEE INCOME AND NET INTEREST REVENUE Primary lines of business ($Million) • Private Wealth, including banking and investment management Fee income • Brokerage & trading services Net interest revenue • Institutional Wealth, including retireme
Slide 24: Transaction processing
Transaction processing Transaction processing volume as of 12/31/2021 EFT TRANSACTION VOLUMES Debit processing & ATM network (Million) • Operates nationally • More than 72% of clients are outside of Oklahoma • Clients: banks, credit unions and C-store chains • 825 million EFT transactions processed
Slide 25: Mortgage banking
Mortgage banking Mortgage banking revenue as of 9/30/2022 SERVICING, ORIGINATING AND MARKETING REVENUE Top 50 U.S. mortgage originator ($Million) • Annual origination volume in 2021 was $2.6 billion Servicing • Servicing an average of $19.1 billion of mortgages at Originating & marketing September 3
Slide 26: BOK Financial Corporation
BOK FINANCIAL CORPORATION
BOK Financial — Investor Presentation (November 2022) on 6ix